Manufacturers under tax stamps grow by 23 percent in first half of 2023
URA says it has been able to on-board new tax payers due to increased enforcement in usage of digital tax stamps. Photo / File
What you need to know:
- The report notes that continued implementation of digital tracking solutions, among them digital stamps and enforcement had supported URA to on-board more new taxpayers and improve declarations
Manufacturers and importers of excisable goods under the digital tax stamps regime increased by 23.3 percent in the period ended June, according to details contained in the Uganda Revenue Authority (URA) half year performance report.
The report, which highlights performance of different tax heads to June , noted that continued implementation of digital tracking solutions, among them digital stamps and enforcement had supported URA to on-board more new taxpayers and improve declarations.
“The [digital tax stamp] register currently has 894 clients. URA is conducting more inspections to bring in more. This is expected to result in more local excise duty registration [and] better declarations,” the report reads in part.
The 23.3 percent growth represents an on-boarding of at least 209 manufacturers and importers from 685 in 2022.
In 2022, URA reported that compliance under excisable goods had increased, supporting the tax agency to register a 21 percent increase in on-boarding of new taxpayers from 364 to 545 manufacturers and 140 importers.
Digital tax stamps remain key in URA’s larger plan to capitalise on digital tracking solutions to increase compliance and on-boarding of new taxpayers.
URA is also counting on Electronic Fiscal Receipting and Invoicing Solution and digital rental tax as some of the other measures that will help it to realise the 2023/24 Shs29.7 trillion target.
URA in the last three years has reported an increase in compliance among excisable duty taxpayers and value added tax due to implementation of digital tracking tax solutions with the number of companies utilising the solutions rising from 600 last year to 1,060.
The growth, data indicates, has resulted in a 39 percent overall revenue increase from primarily local excise duty and value-added tax collections.
Digital tax stamps were first implemented in November 2019, amid resistance from manufacturers and the privates sector, who argued they would increase cost of doing business.
However, government insisted that digital tracking solutions would improve compliance among excisable goods, which have in the last four years grown from under 200 manufactures.
The growth has also led to an expansion in the tax register, which, during the period ended June, rose to 3.5m.
